High conviction trade: sell GBP on strength at 1.2940 - Westpac

Analysts at Westpac offered GBP/USD as a high conviction trade.

Key Quotes:

"We sell GBP on strength at 1.2940, stop 1.3070."

"The ruling Conservative Party’s annual conference has told us what we knew: Brexit negotiations will be difficult and budget plans will have to be loosened. Confidence will not be strengthened, despite recent survey improvements, by clarity on Article 50 being triggered."

"BoE accommodation and this uncertainty will keep the bias for a lower GBP intact despite heavy short positioning."